See also:

2000 Pension Package: A full report from NYSUT's legislative team.

YOU made it happen: a photo gallery of the May COLA rally at the Capitol

Questions?

For details on how these pension improvements may affect you, contact your retirement system directly: New York State Teachers' Retirement System, (800) 348-7298, ext. 6150; New York State and Local Employees' Retirement System, (518) 474-7736.

Thanks to a massive union push, a permanent COLA is a reality - and it's just one of several key bills in a historic pension package reached by the Legislature and the governor.

At New York Teacher press time, both houses of the Legislature had approved the extraordinary package and the bills were expected to be signed by Gov. George Pataki.

What's in it for you: A permanent Cost-Of-Living Adjustment for all public retirees age 62 or older (who have been retired five years or more) or age 55 (retired 10 years). See article this page. Tier 1 and 2 members will receive up to a 4 percent boost in their pensions at no cost. See below. Tier 3 and 4 members (who have a 10-year membership) will no longer have to make the 3 percent pension contribution. See below. Pension credit for military service. See related article. An additional early retirement incentive if your employer opts in. See report from NYSUT's legislative team.

At long last, retirees in the eight public retirement systems can count on a permanent Cost-Of-Living Adjustment in their pensions - with automatic increases tied to the Consumer Price Index.

The other bills take a giant step toward equity - such as improving death benefits, awarding veterans' credit, eliminating the 3 percent contribution for Tier 3 and 4 employees after 10 years of membership in a public retirement system, and giving up to two years of additional retirement credit to Tier 1 and 2 employees.

"This package offers something for virtually every one of our members," said New York State United Teachers President Tom Hobart. "We couldn't have done it without the support and tremendous political action by unionists from one end of the state to the other."

NYSUT activists have fought for years for pension improvements, but this year the statewide union joined other state AFL-CIO unions for a historic May 9 rally that drew 10,000 activists - including 84 busloads of NYSUT members.

A message of solidarity

"This shows the tremendous power of solidarity," said NYSUT Executive Vice President Alan Lubin, who co-chaired the state AFL-CIO Pension Task Force. "Obviously, our state's leaders heard the message loud and clear."

Union activists made a compelling case for the thousands of retirees who are living on pensions of $15,000 or less, while the public retirement systems are awash with money.

The changes will apply to both current and future public retirees of the state's eight public retirement systems.

Former public workers who have been retired the longest and who earn the smallest pensions will get the biggest proportional increase first.

Those eligible will receive a one-time catch-up supplemental payment equal to half of the increase in inflation from the member's year of retirement through 1997. Payments for this benefit will begin on a monthly basis starting Sept. 1.

Others will begin receiving their monthly COLA increase starting Sept. 1, 2001. The annual increase will equal half the increase in the CPI from year to year (March to March), calculated on the first $18,000 of a member's pension.

New York joins about 37 other states that have some kind of a built-in system for pension increase.

Union leaders beat back efforts to link automatic COLA increases to pension fund performance.

"We're tremendously grateful to all our local union leaders and political activists who worked so hard to make this happen," Lubin said.

He also thanked state Comptroller H. Carl McCall, Senate Majority Leader Joseph Bruno, Assembly Speaker Sheldon Silver and Gov. Pataki for their strong support for a COLA.

- Sylvia Saunders

Gains for every pension tier

The great news continues!

• Under pending legislation, if you're in Tier 3 or 4, you'll get the equivalent of a 3 percent raise on your 10th anniversary of membership in a retirement system because your pension contribution will no longer be required.

• Those in Tiers 1 and 2 are slated for a pension credit boost that could be as high as two years of service, or a 4 percent increase.

• On top of this, if your district opts in, there will be an early retirement incentive granting up to an additional three years of service credit.

The employee contribution has been required since those tiers were established nearly 25 years ago.

The "benefit enhancement" legislation, which is expected to be signed by the governor, would save Tier 3 and Tier 4 public employees more than $1 billion per year.

"Allowing our public servants to keep more of their own money is long overdue," said New York State United Teachers Executive Vice President Alan Lubin, who co-chaired the state AFL-CIO's pension task force. "It's a giant step toward tier equity."

Those in Tiers 1 and 2 of a public retirement system would receive one month of additional credit for each year of service, up to 24 months, at no cost to the member. This provision is expected to be phased in for Tier 1 and 2 members of New York City retirement system, in order to avoid exacerbating an already painful teacher shortage.

For state TRS and ERS members in Tiers 1 and 2, the legislation is effective Oct. 1, except for those members who retire between June 1 and Oct. 1. (Note: To qualify, you must have been on the payroll since at least April 1, 1999.)

Lubin noted the legislation is not retroactive and no previous contributions will be returned. At NYSUT's insistence, the enhancement bill is mandatory for all public employers.

For specific questions on how these improvements may impact benefits, members should contact their retirement system directly.

- Sylvia Saunders